Refer to the graph below representing the purely competitive market for a product. When the market is at equilibrium, the producer surplus would be represented by the area:
A. b + c
B. b
C. c
D. b + c + d
B. b
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A newly issued bond with a face value of $8,000 and no coupon payments is priced at $7,000 . The bond will mature in one year. What is the yield on this bond?
a. $1,000 b. 12.5 percent c. 14.3 percent d. $272.73 e. It depends on the interest rate
According to the Laffer curve, a decrease in the tax rate will increase tax revenue
A. if the economy is at the farthest point out on the curve. B. if the economy is on the negatively sloped section of the curve. C. no matter the location of the economy on the curve. D. if the economy is on the positively sloped section of the curve.
Which of the following is NOT an issues in the reduction of trade protection in agriculture?
A) consumption subsidies. B) tariffs and quotas. C) export subsidies. D) production subsidies.
Which one of the following is NOT a component of aggregate demand?
A. government purchases B. goods exported to other countries C. consumption spending D. investment expenditures